Just as the auto industry is starting to rebound from the supply chain issues that led to weaker sales over the past couple of years, an even bigger disruption could be right around the corner. The United Auto Workers (UAW) recently voted overwhelmingly to authorize a strike against the Big Three automakers---Ford, Stellantis, and General Motors---if the two sides can't agree on a new contract. The current contract expires September 14, and the two sides are far apart. "The UAW is asking for a 46-percent raise in pay and a reduction from 40 hours to 32 hours in the workweek," says KTRH Car Pro Jerry Reynolds. "I know the automakers don't want (a strike) to happen, but they also can't afford a 46-percent price hike."
Reynolds tells KTRH this situation could get ugly for both sides, based on the adversarial nature of the negotiations. "They better all be careful with what they wish for, because we could be back where we were in 2008 with the automakers begging the government for money," he says. "I mean, a 46-percent raise could really cripple them."
A strike is possible against all of the Big Three, or just one or two. Either way, Reynolds warns it will have major repercussions for the industry, and for consumers. "Supply is still short for a lot of the dealers out there, so a strike that would completely stop workage would be devastating, if it went on for very long," he says. "Then you're looking at higher prices on cars, with higher interest rates already."
"And, it could be real rough on buyers if this happens."
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